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Biotech / Medical : IDPH--Positive preliminary results for pivotal trial of ID -- Ignore unavailable to you. Want to Upgrade?

To: contrarian who wrote (1494)	3/2/1998 12:11:00 PM
From: Don Cheng	Respond to of 1762

Here is another reason why IDPH is going up today. San Diego, California (March 2, 1998): IDEC Pharmaceuticals Corporation (Nasdaq:IDPH) and SmithKline Beecham (NYSE:SBH) today announced that the companies have selected PRIMATIZEDr IDEC-151 (Clenoliximab) as their lead anti-CD4 antibody for the treatment of rheumatoid arthritis. As reported in November, 1997 at the 10th meeting of the European League Against Rheumatism (EULAR) in Vienna, Austria, Phase I results with IDEC-151 were the first indication of safety, tolerance and clinical activity in patients with moderate to severe rheumatoid arthritis. The majority of adverse events reported in the Phase I study were mild to moderate. Significantly, increasing doses resulted in higher serum concentration of antibody and a longer duration of saturated CD4 cell coating, which may be important for clinical activity and reduction in dosing frequency; yet no depletion of CD4 cells was observed, even at higher doses. The rationale of anti-CD4 antibody therapy for patients with rheumatoid arthritis is not to deplete CD4 cells but rather to regulate their function. Patient accrual in the Phase II portion of a Phase I/II trial with IDEC-151 is expected to be completed by mid-year 1998. Additional Phase II studies are planned in rheumatoid arthritis and may begin later in the year. As announced in June 1997, IDEC and SmithKline Beecham suspended a clinical trial of a different anti-CD4 antibody (PRIMATIZED IDEC-CE9.1). In that trial, CD4 cell depletion was noted in a subset of patients, though no serious side effects were reported. "Of the two anti-CD4 antibodies, IDEC-151 is clearly the preferred molecule for chronic treatment of rheumatoid arthritis and asthma," said Nabil Hanna, senior vice president, research and preclinical development. "The safety and tolerance of IDEC-151 have been demonstrated after single doses and multiple doses in the ongoing Phase I/II study. However," Dr. Hanna continued, "based on IDEC-CE9.1's efficacy profile in Phase II testing, IDEC and SmithKline Beecham are also considering the potential utility of IDEC-CE9.1 in indications where CD4 depletion is better tolerated or even warranted, such as bone marrow transplantation." IDEC and SmithKline Beecham remain committed to the development of anti-CD4 antibodies for the treatment of autoimmune diseases. By regulating the activity of the cell which triggers the unwanted immune cascade, anti-CD4 therapy may provide a longer acting and less toxic alternative to current rheumatoid arthritis and autoimmune disease treatments. IDEC Pharmaceuticals focuses on developing targeted therapies for the treatment of cancer and autoimmune diseases. IDEC's antibody products act chiefly through immune system mechanisms, exerting their effect by binding to specific, readily targeted immune cells in the patient's blood or lymphatic systems. IDEC Pharmaceuticals' news releases are available at no charge through Business Wire's News on Demand Plus. For a menu of IDEC's current news releases and quarterly reports or to retrieve a specific release, call (888) 329-2309. On the Internet see businesswire.com. htm and shareholdernews.com. The statements made in this press release contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the company's expectations. Actual results achieved by the company may be affected by the matters described in this press release, as well as the risk factors listed from time to time in the company's SEC filings, including but not limited to its Annual Reports on Form 10-K for the year ended December 31, 1997, Form 10-Q filed November 14, 1997 and Form S-3 filed on February 24, 1998. Moreover, timelines for ongoing and future clinical activity are subject to change, results of pending or future clinical trials cannot be accurately predicted, and decisions by the FDA and other regulatory agencies, including their determination as to whether there is sufficient clinical data and compliance with all other requirements to support product licensure, may affect the actual results achieved by the company. PRIMATIZED and IDEC Pharmaceuticals are registered U.S. trademarks of the company. The company headquarters is located at 11011 Torreyana Road, San Diego, CA 92121. SmithKline Beecham -- one of the world's leading health care companies -- discovers, develops, manufactures and markets pharmaceuticals, vaccines, over-the-counter medicines and health-related consumer products, and provides health care services including laboratory testing, disease management and pharmaceuticals benefit management. For company information, visit SmithKline Beecham on the world wide web at sb.com.

To: contrarian who wrote (1494)	3/2/1998 5:00:00 PM
From: Webhead	Read Replies (1) \| Respond to of 1762

I have only had limited experience with secondaries but the three times it happened in biotechs I follow the share price took a bit of beating. IMHO a breakout is unlikely until the secondary is over and the volume dries up a bit. First, there is the obvious dilution. Here its a bit over 10%. All other things being equal (which of course they are not!) you'ld expect a 10% hit on share price based on dilution of future revenues (though to some extent this is already factored in). Secondly, since the new shares will be offered at a market discount there will be some arbitrage(sp?) action that will drag down the bid on the day of purchase. IDEC is smart to do this secondary while the share price is strong and when they don't really need the money in the short term. I recall some interesting options deal that IDEC persued involving selling covered calls of its own stock; does anyone know how this turned out? Has the exercise date passed yet? Ed